Gold prices slide
Vietnam's gold bar fell on Friday morning amid a drop in global bullion rates.
Gold prices experienced a slight decline on Friday, with the Saigon Jewelry Company's gold bar price dropping 0.2% to VND149.7 million (US$5,735.85) per tael, though it remains up 1.42% for the week. The price of gold rings also fell 0.2% to VND149.2 million per tael. A tael is equivalent to 37.5 grams or 1.2 ounces.
On a global scale, gold prices slid as market participants eagerly awaited remarks from Federal Reserve Chair Kevin Warsh at the Jackson Hole symposium. Spot gold declined 0.5% to $4,576.30 per ounce, following a high of over three months earlier in the week. U.S. gold futures also fell 0.8% to $4,629.00.
Fed officials expressed concerns about the U.S. inflation landscape during their gathering in Jackson Hole, following the release of data showing the Personal Consumption Expenditures price index at 3.7% over the past 12 months. Despite being viewed as a hedge against inflation, gold tends to lose its allure in high interest rate environments as it does not provide any yield.
However, gold retains support from increased participation in exchange-traded funds and futures, as well as worries over U.S. fiscal credibility and ongoing official-sector buying. Despite this, there remains a risk of consolidation, according to OCBC precious metals strategist Christopher Wong.
Written by urgent.news from VnExpress Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
